GraphOn Corp. Announces Fiscal 2008 Financial Results

SANTA CRUZ, Calif.--([ BUSINESS WIRE ])--GraphOn Corporation (OTCBB: GOJO), a leading worldwide developer of thin-client application publishing and Web-enabling solutions, today announced financial results for fiscal year 2008.

Financial Highlights

Revenue was approximately $6.7 million for the fiscal year ended December 31, 2008, as compared to approximately $11.5 million recorded for the same period in 2007. Net loss for the fiscal year ended December 31, 2008 was approximately $2.6 million, as compared to a net profit of approximately $0.2 million for 2007. Loss per common share on a basic and diluted basis for the fiscal year ended December 31, 2008 was $0.06 per share as compared with net earnings of $0.00 per share for 2007. The loss per common share for the fiscal year ended December 31, 2008 includes a loss of $0.02 per common share resulting from the effect of an approximate $0.9 million non-cash one-time asset impairment charge. Except for this one-time non-cash charge, the 2008 loss would have been $0.04 per share.

"We are pleased with the modest growth in the revenue of our GO-Global product business during the year in spite of the global economic downturn," Robert Dilworth, CEO, said. "After careful review of the current state of the global economy, the very long delays between filing and trial for patent infringement actions and the present policies being followed in the US Patent Office, we have elected to make a conservative assessment of the book value of the intellectual property assets on our balance sheet. Although we believe there will be favorable long-term benefits derived from all of the patents in our intellectual property portfolio, we have concluded it would be in the best interest of our shareholders to take a one-time non-cash adjustment to the book value of certain of these assets." Mr. Dilworth continued, "With respect to our primary line of business, as a result of the investment we are continuing to make in our GO-Global product business, we are confident in the continued success of our GO-Global products during these uncertain economic times. We ended the year with $3.7 million in cash, a portion of which will be judiciously used to continue development of new products which will be announced during the second half of 2009."

About GraphOn Corporation

GraphOn Corporation is a publicly-traded company headquartered in Santa Cruz, California. For over a decade, GraphOn has been an innovator of cost-effective, advanced solutions that help customers access applications from anywhere. GraphOn's high-performance software provides fast remote access, cross-platform connectivity, and a centralized architecture that delivers a dramatically lower cost of ownership. The company's solutions run under Microsoft (MSFT) Windows, Linux and UNIX, including Sun (JAVA) Solaris, IBM AIX, Hewlett-Packard (HPQ) HP-UX, and others. For more information, call 1.800.GRAPHON or visit [ www.graphon.com ].

GRAPHON CORPORATION
Condensed Consolidated Balance Sheets
	December 31,			December 31,
	2008			2007
	(Unaudited)			(Audited)
Assets
Cash and cash equivalents	$	3,742,200		$	5,260,800
Accounts receivable, net		970,000			886,600
Other current assets		63,400			42,600
Total current assets		4,775,600			6,190,000
Property and equipment, net		182,700			134,700
Capitalized software, net		-			3,600
Patents, net		984,000			2,741,300
Other assets		20,200			4,800
Total assets	$	5,962,500		$	9,074,400

Liabilities and stockholders' equity
Accounts payable and accrued liabilities	$	795,700		$	867,200
Deferred revenue - short term		1,744,600			1,475,000
Deferred revenue - long term		858,500			1,833,100
Other liabilities - long term		28,400			-
Stockholders' equity		2,535,300			4,899,100
Total liabilities and stockholders' equity	$	5,962,500		$	9,074,400


Condensed Consolidated Statements of Operations

	Three months ended December 31,					Year ended December 31,
	2008			2007		2008			2007
	(Unaudited)			(Unaudited)		(Unaudited)			(Audited)
Revenue	$	2,429,200		$	7,769,900	$	6,708,700		$	11,485,600
Cost of revenue		133,200			2,266,900		575,100			2,623,000
Gross profit		2,296,000			5,503,000		6,133,600			8,862,600

Selling and marketing		506,700			528,400		1,816,100			1,819,900
General and administrative		870,600			1,330,600		3,796,100			4,703,000
Research and development		659,100			405,400		2,373,500			2,162,700
Fixed Asset impairment		868,200			-		868,200			-
Total operating expenses		2,904,600			2,264,400		8,853,900			8,685,600
Income (loss) from operations		(608,600	)		3,238,600		(2,720,300	)		177,000
Other income, net		11,500			13,200		81,800			58,600
Income (loss) before income taxes		(597,100	)		3,251,800		(2,638,500	)		235,600
Income taxes		(14,400	)		36,500		(11,700	)		42,100
Net income (loss)		(582,700	)		3,215,300		(2,626,800	)		193,500
Other comprehensive loss		-			-		-			-
Comprehensive income (loss)	$	(582,700	)	$	3,215,300	$	(2,626,800	)	$	193,500
Earnings (loss) per common share	$	(0.01	)	$	0.07	$	(0.06	)	$	0.00
Weighted average shares outstanding		47,122,292			47,272,868		47,022,803			46,804,504

This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to GraphOn's most recent periodic and other reports filed with the Securities and Exchange Commission.

GraphOn and GO-Global are registered trademarks of GraphOn Corp. All other trademarks belong to their respective owners.

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GraphOn Corp. Announces Fiscal 2008 Financial Results